Irish clothing retailer Primark has reported financial results for the third quarter of this fiscal. During the period under review, it reported 6 per cent increase in sales at constant currency basis and 7 per cent at actual exchange rates as compared to the same period last year.
Better trading across the eurozone resulted in improvement in like-for-like sales for the fashion retailer, a part of Associated British Foods, during the quarter under review.
The retailer witnessed continuous revenue momentum in the third quarter same as it reported in the first half. It reported 3 per cent increase in revenue in the third quarter as compared to the corresponding period last year.
The fashion brand reported very strong sales from its four stores in Italy and its UK business also witnessed growth in its like-for-like sales. It also reported encouraged trading updates from its resized stores at Freehold and Danbury in the US.
Operating margin in the first half stood at 9.8 per cent as compared to the same period last year and it expects to have a better margin in the second half. For the whole year, the group expects increased profit from Primark driven by higher margins.
As of June 2018, Primark operated a total of 358 stores in 14.7 million sq. ft. retail space as compared to 13.6 million sq. ft. in the same period a year ago. The retailer is now planning 0.1 million sq. ft. increase in retail space by the end of this fiscal, as it has decided to open a store in US while a store in Madrid is proposed to be relocated to a larger store at Islazul Madrid
It opened a total of seven stores located in Munich in Germany, Metz in France, Antwerp in Belgium, Valencia in Spain, Tilburg in the Netherlands, Burnley and Westfield London shopping centre in the UK.
Store openings at Toulouse in France and Ingolstadt in Germany have been delayed. Now it is expected to become operational by next fiscal.
